Default mempools purging txs < 6.0 sat/vB.
Since a full mempool seems to be the new normal, at least temporarily. What can _businesses_ do to lower their operation costs?
The following is mostly picked from blog.bitgo.com/utxo-managemen… if you prefer long form.
#mempoolreport
1/
Since a full mempool seems to be the new normal, at least temporarily. What can _businesses_ do to lower their operation costs?
The following is mostly picked from blog.bitgo.com/utxo-managemen… if you prefer long form.
#mempoolreport
1/
1) Batch payments
You get a lot of withdrawal requests? Instead of paying each out separately, save up to 80% in fees by batching multiple payments into one transaction. It also makes UTXO management much easier!
bitcointechtalk.com/saving-up-to-8… 2/
You get a lot of withdrawal requests? Instead of paying each out separately, save up to 80% in fees by batching multiple payments into one transaction. It also makes UTXO management much easier!
bitcointechtalk.com/saving-up-to-8… 2/
2) Consolidate deposits
You're still getting tons of deposits and have to perform withdrawals. By funding withdrawals only with bigger UTXOs and consolidating smaller UTXOs at a lower feerate than your withdrawal transactions, you can save a ton of fees. 3/
You're still getting tons of deposits and have to perform withdrawals. By funding withdrawals only with bigger UTXOs and consolidating smaller UTXOs at a lower feerate than your withdrawal transactions, you can save a ton of fees. 3/
3) Split consolidation by UTXO value
The least valuable UTXOs get consolidated at the lowest feerate with biggest delay or paused altogether. Consolidations of more valuable UTXOs get distinct higher feerates to prioritise what provides the most liquid funds for operation. 4/
The least valuable UTXOs get consolidated at the lowest feerate with biggest delay or paused altogether. Consolidations of more valuable UTXOs get distinct higher feerates to prioritise what provides the most liquid funds for operation. 4/
4) Switch to using native segwit internally
Even if you're not ready to switch to native segwit addresses generally, you can save fees and blockspace by using native segwit addresses when sending to yourself, i.e. for change or consolidations. Less fees, less blockspace! 5/
Even if you're not ready to switch to native segwit addresses generally, you can save fees and blockspace by using native segwit addresses when sending to yourself, i.e. for change or consolidations. Less fees, less blockspace! 5/
5) Avoid change outputs
By picking input sets that match the sum of recipient amounts, you:
• get smaller transactions
• don't have extra funds in flight via unconfirmed change
• create fewer UTXOs that need to be spend later
6/
By picking input sets that match the sum of recipient amounts, you:
• get smaller transactions
• don't have extra funds in flight via unconfirmed change
• create fewer UTXOs that need to be spend later
6/
6) Switch to native segwit deposit addresses
Funds received to native segwit addresses incur significantly less blockweight for their inputs. You can even economically incentive deposits to native segwit addresses and still save money! Segwit is out 3.5 years. It's time! 7/
Funds received to native segwit addresses incur significantly less blockweight for their inputs. You can even economically incentive deposits to native segwit addresses and still save money! Segwit is out 3.5 years. It's time! 7/
7) Mind ancestry of unconfirmed inputs
If you end up building chains of unconfirmed txs, you'll have a bad time in the current mempool conditions. Stuck transactions, inability to CPFP, or even locked up wallet balance. You don't want to be this:
8/
If you end up building chains of unconfirmed txs, you'll have a bad time in the current mempool conditions. Stuck transactions, inability to CPFP, or even locked up wallet balance. You don't want to be this:
https://twitter.com/murchandamus/status/1352464020813524994
8/
8) Implement RBF
Other than CPFP, RBF allows you to replace stuck transactions with a higher feerate version without using extra blockspace. You can even add additional recipients to the replacement tx. It's a big lift though, because payments need to be tracked differently. 9/
Other than CPFP, RBF allows you to replace stuck transactions with a higher feerate version without using extra blockspace. You can even add additional recipients to the replacement tx. It's a big lift though, because payments need to be tracked differently. 9/
9) Lightning Deposits and Withdrawals
LN can be leveraged to increase transaction throughput by magnitudes with little on-chain footprint:
LN can be leveraged to increase transaction throughput by magnitudes with little on-chain footprint:
https://twitter.com/murchandamus/status/1359887952978051072. It's also a big lift, but one that should be on your roadmap. 10/
10) Need advice?
Ping me, happy to chat with you about your specific situation. We can bounce ideas around, figure out some accessible operational improvements.
Especially happy to assist member companies of @bitcoinoptech.
11/11
Ping me, happy to chat with you about your specific situation. We can bounce ideas around, figure out some accessible operational improvements.
Especially happy to assist member companies of @bitcoinoptech.
11/11
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